Dividends Series 2016 Q4

Time to harvest the fruits of the FIREplant. The beauty of a plant is that you it grows independently as long as there is a fertile and conducive environment for it to grow. Light, water, nitrates, CO2… You can look at it day to day and it will look practically the same. However see it in a monthly, yearly basis and you may see the flowers developing, fruits riping, writhing of the flowers, leaves and then the warmth returns and there’s growth yet again in another season. Patience, my friend is virtue.

Q4 2016 Dividends hasn’t been great, even with the addition of just about 87 arbitrary units into my portfolio in Nov 16. The overall trend is that of decreasing absolute value of dividends over each subsequent quarter over the year. This may be general nature of the portfolio I have built or perhaps due to the marcoeconomic effects of Brexit etc. It probably doesn’t really matter much.

Overall Dividend Yield is about 2.0% in 2016 on the amount invested. (Note that this is with only 3 quarters of Dividend). It would be interesting to get several years of data on this. However I am too lazy to do retrospective studies, so I shall just do a prospective study as I go along.

quarterly-dividends

As I stated in Lighthouse for the Cruising Ship, I am looking for some growth of the Dividends in 2017. That is important for the momentum for Compound effect to build up.

Even the dung beetle takes time to roll up a ball of dung.

-FIREplanter

7 Replies to “Dividends Series 2016 Q4”

  1. Hi FP,

    I am a little surprised to see that your dividends are dropping, especially as you are adding to the portfolio. Definitely one to keep an eye on – even if you are just on trackers it would take some considerable surprise cuts. Either way its still “free” money for you to reinvest, so hopefully it will start going up again!
    Cheers,
    FiL

    1. I have had a preliminary look at the dividend history of the ETFs past few years. It seems that the ETFs each have very consistent pattern of variable dividend payout across the 4 quarters year to year, might be due to the way the constituent companies payout. Definitely would be interesting to review after at least 2 full years of personal data. The problem with this is by the data is generated, its too late to go back to change things. So in the end, it’s just a ‘try-it-out-to-see-if-it-works’ thing!
      -FIREplant

      1. Hi FP,

        This is true – I have seen that mine have been a bit skewed, however its slightly harder as I keep adding to my portfolio so when it may seem like a massive boost thats because of the increase! As you say – wait see what happens after a couple of years data – with the tracker side I take the view of the money is in – forget about it and just see what comes out!
        Cheers,
        FiL

    2. I am using the tracker porfolio to build up my confidence, accounting skills and knowledge about the market. After a few years when I am entirely comfortable and feel at ease with all the set up and have a solid foundation of a sizeable tracker portfolio, I might start to look into branching out a small percentage of the portfolio into value investing.. It’s a process for me.

      1. Hi FP,

        A very sensible approach – get the basics in place, reduce the risk and watch the money flow in! I of course did it the other way around (not recommended!). Look forward to seeing how it pans out!
        FiL

        1. I do get that a lot. Sometimes I think I am too sensible. I picked up a nugget of wisdom last weekend ‘Fortune favours those who are Brave’… I need to do more unexpected stuff and things out of my comfort zone to ‘shake things’ up a little.. to have a more interesting experience and perhaps something great will come out of it. Of course you always need to take calculated risks.. You can’t jump off skydiving without a parachute. That’s suicidal. So yea. Too sensible.
          -FIREplanter

      2. Hi FP,

        Whilst there is something to be said with Fortune favours the brave, it really does depend on how you respond. The first thing is really to find yourself as it were – how do you respond to drops or surges in profit. With the diversified ETF at least you dont risk a 100% loss, so you can start to see how you feel. Say you throw £10,000 into the ETF could you cope if the market plunged 50% – how would you feel then?

        The next part then is to work out a budget and stick to it – I do a lot on the “blue chip” side and don’t worry too much, but then when you get to more of the AIM side or smaller, then its gamble time but stick – once the money is lost, its gone. Or you do very well 🙂

        Retain some sensibility….
        FiL

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